Marvell Technology Q2 FY1/26 Earnings Review

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Where Degenerates Fear To Tread

by Alex King, CEO, Cestrian Capital Research, Inc.

The present “degenerate economy”, to quote the esteemed Howard Lindzon of StockTwits fame (an early investor in Robinhood, no less), is really a response to three changes in life in the last 20 years.

• Selling your labor for money is now even more of a terrible way to make a living than it once was, because the money supply.
• Asset prices just keep on rising, because the money supply.
• Everyone who sells their labor for money, as their true consciousness wakes up to these facts, is in a big ole hurry to make money from stonks, crypto, sports gambing, whatever, anything to not feature in an early Bruce Springsteen song of their own making.

It’s not degenerate to want to make money fast and get out of the rat race. It’s just good sense. The trouble is, it’s very difficult to do so. There are endless fast-money schemes on offer at every moment of every day, but even those that work tend to have their participants overstay their welcome. Which means that folks tend to not bank gains and move on - it means folks are always chasing the next momentum play having failed to capitalize correctly on the last one. And this is what leads to the ADHD that most investors and traders suffer from.

There is an antidote, however, and that is to try to make money in a more programmatic manner. It means your dopamine levels won’t ever spike in the way that a tasty levered single-stock ETF will do for you. And it means you will need to develop something called patience, which is a bore and no mistake.

But. This is a way to make outsize gains if you can wait - and by the way the way to not have to wait is to have a number of these plays in progress at any one time, all at different stages in their cycle.

Let’s discuss the case of Marvell Technology, Inc ($MRVL). The company provides all manner of semiconductor componentry needed to build AI datacenters and other such monolithic systems. It’s not a headline name like $NVDA or even $INTC but it is of systemic importance to this customer segment.